Rally may continue till 69,000-69,200

On Monday, the benchmark indices witnessed a stellar rally, BSE Sensex was up by 1,371 points. Among sectors, all the major sectoral indices were traded in the positive territory, but PSU Bank, Metal and Energy indices outperformed, rallied over two per cent.

Technically, after a gap-up opening the market held the positive momentum throughout the day. The Nifty and Sensex registered a fresh all time high of 68,918.20 points. And it also formed a bullish candle on daily charts, which supports further uptrend from the current levels.

“For the trend following traders now, the 68,200 would act as a sacrosanct support zone as long as the index is trading above the same; uptrend formation is likely to continue on the higher side, the index could continue the rally till 69,000-69,200,” says Shrikant Chauhan of Kotak Securities. On the flip side, below 68,200 uptrend would be vulnerable. We are of the view that, the current market texture is bullish, but for the day traders now, buy on intraday corrections and sell on rallies would be the ideal strategy.